Arthur Hayes: Bitcoin Short Squeeze Could Restart Ethena Flywheel, ENA Yield Expected to Rise to 9%

Odaily News: Arthur Hayes reposted his interview video on X platform, stating that the Ethena (ENA) ecosystem is currently facing a downturn, but as market conditions improve, its yield mechanism may restart. ENA price has dropped approximately 99% from its all-time high, with venture capital selling pressure and the crypto market downturn leading to lower yields, causing the entire mechanism to stall.

Arthur Hayes stated that if Bitcoin rises and triggers large-scale short covering, the market basis could expand rapidly, and a higher basis would push Ethena yields from the current ~4% to 8%-9%. Once yields recover, Ethena's yield-driven mechanism could re-establish a positive feedback loop, revitalizing the ecosystem.